Out of geo deals

We’ve recently been more actively looking at opportunities outside of our main market, continental Europe. Part of that is the draw of our DTC thesis: there’s just a lot more happening in NYC and London. And some of those deals are coming to us. 

We’ve done one investment in New York earlier this year and one in London just a few weeks ago. Both will stay unannounced until they’re ready to raise an A (this seems to have become market standard). 

When considering out of geo deals, the question always comes up: why are we seeing this instead of the locals? 

It’s the flip side of FOMO - the fear of errors of commission because we aren’t part of the chatter in that particular market. That’s certainly a risk from a pov of attracting follow-on investment at the next round. 

On the other hand, we are conviction investors. We have a fairly narrow thesis and when we come across something we like, we can make our minds up quickly. And we’re not afraid of being contrarian. 

A great business can attract financing from many sources and venture investors are only one of these. I believe as the DTC frenzy increases, we will see more specialized funds and financing methods (eg working capital) emerge. 

PS. I’m writing this only my phone with my toddler sleeping on my shoulder. Bliss.